We may very well see more FMV in videogames, since the technology to display it and interact with it is much better today than it was when FMV was first being pushed. That having been said, you're still dealing with video clips, which are inherently non-interactive, and thus not conducive to highly interactive videogaming. We see some hints of FMV being used to embellish otherwise fully-3D games, such as crowd scenes in sports games, but I can't imagine any FMV technology that wouldn't essentially be fancy "choose-your-own-adventure" type games.

On the other hand, 3D graphics are getting better and better in videogames, and I can easily see the day when photorealistic 3D characters in videogames become the norm, with actors digitally scanned in and replicated as a 3D models. Heck, they've been doing this for years in movie special effects, so I suspect that photoreal 3D characters will probably arrive in the next generation or two of videogame technology.

It's arguably possible NOW, since 3D graphics chips are capable of displaying millions of polygons a second as well as several layers of shaders, but if they did the character justice, there wouldn't be enough polygons to do much else (explosions, scenery, other characters, etc.). We're getting closer and closer, though, as evidenced by "Fight Night Round 4."

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